Unilever on Thursday reported higher-than-expected third quarter underlying sales growth, as it hiked prices in response to cost inflation. The consumer goods and food maker said underlying sales rose 2.5% for the three months to September 30, beating the 2.2% of analysts' forecasts. Growth was boosted by good demand in the US, India, China and Turkey, while a 4.1% increase in prices offset a 1.5% volume decline. The Company reiterated its guidance for full-year 2021 operating margins to be "around flat" year-on-year thanks to multiple factors. Those included revenue growth management initiatives, savings from efficiencies, some benefit from the unwinding of the Covid-19 on costs and mix and from adjusting Brand and Marketing investments. But Unilever might lose some market share after several large fast-moving consumer goods rivals, such P&G, Loreal or Nestle, had flagged their intention to ramp-up marketing spend. The company could be a mega-merger target.
IMPORTANT: Please remind yourself that this is just my personal view on the market. My analysis should NOT serve as any recommendation to buy or to sell. Always make your analysis of your own before your trade. If you find useful my analysis, please hit the LIKE button and follow me.
Please remind yourself that this is just my personal view on the market. My analysis should NOT serve as any recommendation to buy or to sell.
Always make your analysis of your own before your trade.
If you find useful my analysis, please hit the LIKE button and follow me.